UBS Trims Numbers on Inergy (NRGY) on Pending Crestwood Merger

UBS lowered estimates and its price target on Neutral-rated Inergy (NYSE: NRGY) from $19 to $16 Wednesday to reflect current dilution with 2 of 3 steps for the Crestwood (NYSE: CMLP) merger now complete. The 3rd stage, set for C3Q, will fold CMLP into NRGM for 1.07 NRGM units per CMLP unit and $1.03 in cash for each publicly held unit of CMLP.

"We est NRGY's standalone June-quarter distribution will be $0.13/unit (down from $0.29) with ~1.1x coverage," analyst Shneur Gershuni states. "EPU and DCF should be diluted until the final CMLP deal closes, as NRGY's unit count has increased faster than its cash flow (although LT growth should be higher). Once the merger is completed in 3Q (which we expect), we will update numbers to reflect the fully combined entities."

The firm lowered FY 2013 EPS from $0.24 to $0.07 and FY 2014 EPS from $0.53 to $0.11.

For an analyst ratings summary and ratings history on Inergy click here. For more ratings news on Inergy click here.

Shares of Inergy closed at $15.82 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Citi Downgrades Molson Coors (TAP) to Sell, 'Cycling 2023 Could Be a Mountain Too Hard to Climb'
• Deutsche Bank Upgrades MSCI Inc. (MSCI) to Buy, 'Compelling entry point for long-term investors'
• American Express (AXP) PT Raised to $255 at Evercore ISI